Sophie Macon

Sophie Macon

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      While you’re waiting for the new curriculum, might be worth checking out our research-backed article summary on the most effective study techniques for the CFA exams – reading (3x) is not as effective as doing practice questions!

      Oh, and our free CFA study planner is already updated with 2022 topics! Hope this helps with study planning 🙂

       

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      Hi @vr-cfa2020, it sounds like you should have no issues achieving CFA Institute’s work experience requirements, which is essentially:

      1. at least 4,000 hours of relevant work experience, completed in a minimum of 3 years. These can be accrued from any previous or current position, and do not have to be continuous.
      2. relevant work experience hours must be directly related to the investment decision-making process or producing a work product that informs or adds value to that process.
      3. work experience earned through full-time, part-time, or remote work arrangements — before, during, or after your participation in the CFA Program — can qualify.

      It all boils down to your description of the ‘investment-related’ work, which should involve:

      1. evaluating or applying financial, economic, and/or statistical data as part of the investment decision-making process; OR
      2. supervising those who do such analysis; OR
      3. teaching others on how to analyze and apply the data.

      Auditing/controls work should be less relevant here, but FP&A, research analyst and investment evaluation should be relevant.

      Hope these help to start, else check out our Work Experience guide for more details and examples to detail your relevant work experiences.

      Zee Tan voted up
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      Accepted answer

      Study strategy aside, CFA registrations for August 2021 are now closed, so you might not be able to carry out your exam plan.

      As for your original question, I don’t think it’s advisable to try and pass CFA L1 in 3 months off the back of your FRM knowledge.

      We recommend 6 months preparation, and even if you assume a pure 40% overlap, that’s 3.5 months, and that’s assuming you’ve completely mastered the relevant bits of FRM.

      Obviously you’re free to try (registration issues aside) but I don’t think it would allow you to maximize your pass chances.

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      Accepted answer

      The ‘usual’ recommendation is you’ll need about 6 months preparation between exams, and about 300+ hours total study time per level, might be more depending on individual. This should give you a good idea on what weekly commitments you’ll need.

      Our free study plan (generate one here) will be able to calculate all this stuff automatically for you, just put in your parameters.

      Given that you don’t have finance degree or work experience, I’m assuming you’ll need to put in some good hours and clear your final month for review and mocks.

      If you’re sitting for your L1 exam in Nov21 you won’t be able to sit for your L2 in Feb22. The fastest route would be Nov21-Aug22-May23. Our journey planner would help you figure this out.

      There’s also a beginners guide to the CFA exams that might be useful for you:

      What Is The CFA Exam? A Useful Beginner’s Guide

      Hope that’s useful! If you have more questions just start a new topic.

      Zee Tan voted up
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      I’ve found the screenshot: on 19 March 2021, this is what CFA Institute’s website stated:

      Sophie Macon 28

      mikey voted up
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      We were just discussing this in this other thread: https://300hours.com/f/cfa/level-2/t/level-2-syllabus/

      The 2022 CFA Level 2 curriculum should also be released soon when Level 2 Feb-2022 registration opens, likely in May 2021.

      All things considered I would advise waiting for registration to open and start your studies when you’ve registered.

      If you must start before the curriculum is released, I would work with the 2020/2021 curriculum and stick to Ethics and Quant to start with.

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      We did a quick reach out on Instagram and some followers have confirmed that CFA Institute told them there were no exceptions, and the only option is to withdraw from the exam.

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      Let’s look at the three CFA LOS command words:

      Analyze

      • Definition: to examine the constituent parts of something and how the parts relate to each other and to the whole
      • Explanation: Analyze asks you to be able to take apart something for study (e.g., a financial statement or an investment strategy) in order to understand the whole in full detail. In the first example of use below, the phrase “including …” highlights points that must be included in an analysis.
      • Examples:
        • “analyze bottom-up active strategies, including their rationale and associated processes”
        • “analyze the effects of currency movements on portfolio risk and return”

      Calculate

      • Definition: to compute, to determine by mathematical processes
      • Explanation: This command word asks you to be able to show that you can find a correct numerical value for a quantity of interest, such as a rate of return, a present value, or a cost of capital. When the numerical value is not found using math but by some other means determine may replace calculate. Calculate is frequently used in the phrase “calculate and interpret,” in which interpret addresses the ability to explain verbally the numerical result.
      • Examples:
        • “calculate and interpret the cost of equity capital using the capital asset pricing model”
        • “calculate and interpret the leverage ratio”

      Explain

      • Definition: to make clear and intelligible, provide insight into
      • Explanation: Explain incorporates the expectation that you can clarify meaning and relationships. Explain subsumes the ability to describe. [Where calculations are relevant to understanding and covered in the text, explain subsumes the ability to calculate.] “Explain how …” means “provide insight into the ways …”
      • Examples:
        • “explain professionalism in investment management”
        • “explain international parity conditions”
        • “explain how flows in the balance of payment accounts affect currency exchange rates”

      So explicitly explain includes calculation questions. Analyze is less clear. I think it can technically include calculation questions but most of it will be the kind of question that asks “When conditions are X, will metric Y be positive/negative/unchanged?”

      For example, here’s Reading 42e of CFA Level 2:

      analyze the relationship between spot prices and future prices in markets in contango and markets in backwardation;

      And here’s a typical question:

      When the market is in backwardation, the roll yield will be ______ for a long investor.

      A. negative.
      B. positive.
      C. zero.

      Hope that’s clear – if there are any follow-up questions just reply to the thread.

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      Registration for the CFA Level 1 Feb 2022 exams are expected to open sometime in May 2021. Access scholarships as you may know are due to open soon, so if you’re certain to apply for Feb 2022 you could put in an application when it does.

      We have a guide to CFA scholarship application here: CFA Scholarships: How to Successfully Get Them

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      The previous exam cycle (Feb-2021) benefitted from CFA Institute including the old paper-based format mock exams. So they got two extra mocks, compared to the one full set that current candidates have.

      I think going forward the expectation is that there will be just one mock exam – the CFA Institute website states “mock exam” rather than “mock exams”:

      Sophie Macon 34

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      The 2022 CFA curriculum is expected to be quite different from 2020 and 2021. It should involve quite a lot of difference from what is tested in the 2021 exams, since it will incorporate two years’ worth of curriculum updates.

      The 2022 CFA Level 2 curriculum should also be released soon when Level 2 Feb-2022 registration opens, likely in May 2021.

      All things considered I would advise waiting for registration to open and start your studies when you’ve registered.

      trenth voted upZee Tan voted up
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      Accepted answer

      When I was getting my work experience approved, the email my references got contained a link where they could review what I wrote about my relevant work experience, as well as the percentages of the nature of my roles and responsibilities.

      They would then verify to CFA Institute that what I’m saying is true.

      This would have changed slightly with the revised work experience requirements that CFA Institute have introduced this year, but on the whole I would expect it to be similar.

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      That’s not correct:

      • Ethics is not like random compliance training where the answer is obvious. It’s not.
      • It’s important to make sure you do well in Ethics – it’s a substantial part of the exam and is present at every level
      • Ethics adjustment means it can literally mean the difference between you passing or failing

      Our guide can help you get started on why Ethics is significant, and tips on how to approach it: CFA Ethics: Top 10 Tips To Nail This Section [All Levels]

       

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      Let’s run through a scenario where the interest rates drop:

      • Long callable bond: When interest rates drop, the bond holder (you) loses out. The bond issuer calls back the bond and reissues at lower interest rates.
      • Long option-free bond + short receiver swaption – when interest rates drop:
        • Long option-free bond: rises in price, so the bond holder (you) goes $$$ up, and you receive fixed interest payments.
        • Short receiver swaption: If you short a receiver swaption you’re selling the option to receive fixed interest payments, so when interest rates drop, the option is exercised and you have to pay fixed and receive floating.
      • Your fixed payments from your long option-free bond therefore goes to pay your short receiver swaption, so you net receive at current variable interest rates, same as the long callable bond.

      Does the rise in price of the long option-free bond mean that it’s NOT equivalent? Nope, that gets cancelled out too.

      The rise in price of the long option-free bond is due to your right to receive (higher) fixed interest payments when interest rates drop. This rise in value is negated by your liability to pay fixed due to your short receiver swaption. So price-wise, again it’s a flush with the long callable bond.

      Hope that makes sense? Let me know.

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      Reversals of impairment losses on equity investments classified as AFS are not reversed through the consolidated statement of income; increases in their fair value after impairment are recognized in other comprehensive income.

      This one?

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      Yes, that’s right!

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      We totally get it and we’re on your side on this. For our part, we try and get the most accurate information to help everyone, but we don’t have the power to change CFA Institute’s policies on this.

      As far as lobbying CFA Institute for changes, perhaps in time we can figure out a process to help candidates in that respect as well.

      Hope things will get better for those in affected areas soon.

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      Hi @tushar1804, I’ve merged your question with this thread which @mikey and @zee have answered in detail above.

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      Thanks for following up with what happened – glad to know that the registration department helped at least!

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      No problem! If you have more questions during your CFA prep just create a new topic.

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